120.—(1) Where an eligible student ceases to undertake a designated course and transfers to a designated distance learning course at the same or at another institution, the Department must convert the student’s status as an eligible student to that of an eligible distance learning student in connection with the course to which eligible student is transferring where—
(a)the Department receives a request from the eligible student to do so; and
(b)the period of eligibility has not terminated.
(2) The following applies to a student who transfers under paragraph (1)—
(a)where the Department has determined to pay an amount of disabled students’ allowance to the student under Chapter 3 of Part 5 in periodic instalments, no payment in respect of that amount of grant must be made in respect of any instalment period beginning after the date on which the student becomes an eligible distance learning student;
(b)the maximum amount of disabled distance learning students’ allowance to which the student would, apart from this regulation, be entitled in connection with undertaking a designated distance learning course in respect of that academic year is reduced by one third where the student became an eligible distance learning student in the second quarter of the academic year and by two thirds where the student became such a student in a later quarter of that year;
(c)where an amount of disabled students’ allowance for any purpose has been paid to the student under Chapter 3 of Part 5 in a single instalment, the maximum amount of disabled distance learning students’ allowance payable for that purpose is reduced (or, where sub-paragraph (b) applies, further reduced) by the amount of grant paid to the student for that purpose pursuant to Chapter 3 of Part 5, and where the resulting amount is nil or a negative amount that amount is nil; and
(d)where immediately before the student became an eligible distance learning student the student was eligible to apply, but had not applied for a loan for living costs in respect of that year, or had not applied for the maximum amount or increased maximum to which the student was entitled, the student may apply for such a loan or such additional amount of loan as if the student had continued to be an eligible student; and in the circumstances mentioned in paragraph (3) the maximum amount or increased maximum amount of such loan for the academic year is reduced in accordance with that paragraph.
(3) Where the request under paragraph (1) is made during the first quarter of the academic year in respect of which the loan is payable the maximum amount or increased maximum amount of loan (as the case may be) is reduced by two thirds, and where the request is made during the second quarter of that year that amount is reduced by one third.